The main difference between the short run and the long run is that  firms earn zero profits in the long run the long run always refers to a time period of one year or longer in the short run, some inputs are fixed in the long run, all inputs are fixed

Q: Explain the influence of costs in the short run on a firm's output

A: Short-run is a period of time when there is some cost which cannot be varied.

Q: A consumer has preferences on Amazon original shows (x), and the composite good (y) described as…

A: Hello. Since you have posted multiple parts of the question and not specified which part of the…

Q: 3. A firm producing hockey sticks has a production function given by q = 2√kl. In the short-run, the…

A: Answer: Given, q=2klk=100v=$1w=$4 (a). The total cost function is given below: Total cost=units of…

Q: Which of the following statements is FALSE? At point "A", the average product of labor is falling.…

A: In the first stage, AP increases at an increasing rate and MP also increases at an increasing rate…

Q: In the short run, the firm's amount of capital equipment is fixed at k = 100. The rental rate for k…

A: As per Bartleby guidelines, providing solutions for first four parts.IntroductionCost and production…

Q: In the long run * O all inputs are variable. O all inputs are fixed. O some inputs are variable and…

A: The long run is a concept in which there is equilibrium in all the markets and prices and quantities…

Q: Roland Umbrellas has a production function given by Q = L0.5K0.5. The wage (W) is $80 per day and…

A: At optimal point, marginal rate of substitution is equal to the price ratio of two inputs used in…

Q: Fill in the blank! A lyft driver buy a Honda vehicle in order to drive, this is an example of a…

A: We need to calculate average variable cost, marginal cost and average total cost to answer these…

Q: In economics, the long-run' refers to the time period when all factors of production are fixed. some…

A: The long run refers to a period of time during which all variables of production can be changed. It…

Q: What factors affect the cost of production in the long-run? Pick all that apply Multiple answers:…

A: The inputs such as capital, labour and land are used to produce and output in the market is known as…

Q: Write a short note on Law of diminishing returns – implications for the short-run cost curve

A: Law of diminishing return to scale implies that as the number of a variable input is raised keeping…

Q: What is the profit maximizing amount of labor that Belfast Company should hire?

A: Profit maximization is the process by which a firm determines the price, input, and output levels…

Q: Hurley owns a restaurant. To operate the store, he needs to hire labor (L) ar capital (K). The…

A: Given  Short run production function: QL,K¯=L0.5K¯0.5                    .... (1) The market price…

Q: In the short run, a firm has constant marginal returns to its variable input. Draw a graph…

A: In economics, marginal cost refers to the change in the total cost of production that arises when…

Q: Suppose the long-run production function for a competitive firm is f(x1,x2)= min {x1,2x2}. The cost…

A: Given: Production function:  f(x1,x2)= min {x1,2x2} Cost per unit of x1 = w1 Cost per unit of x2 =…

Q: In the long run a company that produces and sells popcorn incurs total costs of $1,000 when output…

A: Economies of scale occur when the average total cost (ATC) decreases as output increases in the long…

Q: We expect the marginal cost to increase as this firm produces more computers. But when the firm…

A: The rise or fall in the cost of producing/providing one more product is referred to as marginal…

Q: Short-run average total cost      shows the minimum average total cost for each level of output…

A: Answer: Correct option: option 4 (might have a flat portion that indicates a constant average cost…

Q: In the short run, when the firm produces zero units of output, then what is always equal to zero?

A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…

Q: Explain the difference between the short and long run

A: Short run It represents the time period in which input quantity of at least one input is fixed…

Q: Diminishing returns occurs in the short run because: A.There are variable inputs to production in…

A: According to the law of diminishing marginal returns, the marginal product decreases as more and…

Q: Assume a firm is trying to maximize output subject to a budget and is currently in the long run…

A: The long-run is the timeframe when all expenses are variable. The long-run relies upon the points of…

Q: Using the long-run average cost curve and at least two short-run average cost curves, illustrate why…

A: The LRAC curve is a graphical illustration that shows how an organization's average production costs…

Q: fall in the long-run cost curve

A: A cost curve which represents the minimum cost at which output can be produced in the long run is…

Q: Why Law of Diminishing Returns is a short run law?

A: Law of Diminishing returns states that as more of the variable factor is combined with the fixed…

Q: The feature that distinguishes short-run from the long-run is the *       length of time it takes to…

A: Short run and long run are period of times in production of goods which differ according to the…

Q: A firm has the production function q = K0.25L0.25 , where K is capital, L is labor, and q is output.…

A: ***Since the third subpart of the question has not been mentioned clearly, so, the expert has solved…

Q: Explain and illustrate using isoquants and isocosts how a firm that is currently using the least…

A: For a given isoquant, firm is trying to minimize the cost of production using the inputs…

Q: Which of the following statements is correct?

A: The returns to scale represents by how much the total output increases if all the inputs used in…

Q: ipam owns a firm that sells basketball apparel. As the firm's output increases, the firm's short-run…

A: An economy refers to the system of interrelated manufacturing and consumption activities that…

Q: The long-rung production function of a competitive firm is f(L,K)= L¹/³K¹/5, where L is the amount…

A: In long run, all factors of production are variable so Labor and capital can be adjusted as…

Q: 22. What does the Long Run Average Cost curve depict? a) It depicts the relationship between Average…

A: Long-run average total cost (LRATC) is a business metric that addresses the average cost per unit of…

Q: John's total cost is $400 while his variable cost is $300  Calculate the value of John's fixed cost

A: The information being given is:- Total cost for John = $400 Variable cost for John's firm = $300 We…

Q: In the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The…

A: We have to calculate The equilibrium wage rate and equilibrium level of labour use.

Q: The short run is a period of time in which: The quantities of some resources (inputs) are fixed. The…

A: The short-run is the period of time in which at least one factor of production (FOP) cannot be…